Corcept Therapeutics Target of Unusually Large Options Trading (NASDAQ:CORT)

Corcept Therapeutics Incorporated (NASDAQ:CORT) saw some unusual options trading on Wednesday. Investors bought 6,120 put options on the company. This is an increase of 324% compared to the typical volume of 1,445 put options.

Corcept Therapeutics Trading Down 50.4%

CORT stock opened at $34.80 on Friday. Corcept Therapeutics has a 12 month low of $32.99 and a 12 month high of $117.33. The firm’s 50-day moving average is $77.14 and its 200 day moving average is $75.01. The company has a market capitalization of $3.66 billion, a PE ratio of 39.55 and a beta of 0.24. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.14 and a quick ratio of 3.07.

Corcept Therapeutics (NASDAQ:CORT) last issued its earnings results on Tuesday, November 4th. The biotechnology company reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.02). The company had revenue of $207.64 million during the quarter, compared to the consensus estimate of $223.78 million. Corcept Therapeutics had a return on equity of 15.99% and a net margin of 14.19%.Corcept Therapeutics’s revenue was up 13.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.41 earnings per share. On average, research analysts anticipate that Corcept Therapeutics will post 1.36 EPS for the current year.

Corcept Therapeutics News Roundup

Here are the key news stories impacting Corcept Therapeutics this week:

• Neutral Sentiment: Trading halt early Wednesday ahead of the announcement, then unusually high volume as the CRL was released — an operational market event that preceded the sell-off. US FDA declines to approve Corcept’s drug
• Neutral Sentiment: Coverage pieces assessing company strategy and risk around relacorilant and pipeline positioning; background reading for investors on potential next steps (meetings, additional data). A Risky Spot For Corcept Therapeutics
• Negative Sentiment: FDA issued a Complete Response Letter for relacorilant (requested additional evidence of effectiveness for treating hypercortisolism/Cushing’s syndrome with hypertension). That CRL is the primary driver of the share decline because it blocks the expected near-term approval and revenue opportunity. Corcept Receives Complete Response Letter for Relacorilant
• Negative Sentiment: Major news outlets confirm the FDA found insufficient evidence of efficacy and the company said it will meet with the agency — uncertainty about the scope/timeline of additional trials or analyses raises execution risk and delays potential revenue. Corcept Therapeutics Shares Drop 50% After FDA Rejects Drug
• Negative Sentiment: Analyst reaction: firms cut ratings/targets (example: Wolfe Research downgraded to underperform), signaling lower near-term expectations and pressure on sentiment. Why Corcept Therapeutics Plummeted by 50% Today
• Negative Sentiment: Unusual options activity: a large surge in put buying ahead of/around the announcement amplified downside pressure and indicates traders were positioned for a negative outcome. Corcept Therapeutics Stock Sinks On FDA Setback For Relacorilant
• Negative Sentiment: Potential securities litigation: a firm announced an investigation into possible securities-law issues tied to the FDA outcome, adding legal/administrative overhang. Kaplan Fox & Kilsheimer LLP is Investigating Corcept

Wall Street Analyst Weigh In

CORT has been the topic of several analyst reports. UBS Group initiated coverage on Corcept Therapeutics in a research report on Tuesday, December 16th. They set a “neutral” rating and a $95.00 target price on the stock. Zacks Research upgraded shares of Corcept Therapeutics from a “strong sell” rating to a “hold” rating in a research report on Monday, December 15th. Wolfe Research downgraded shares of Corcept Therapeutics from a “peer perform” rating to an “underperform” rating and set a $30.00 target price on the stock. in a research note on Wednesday. Wall Street Zen cut shares of Corcept Therapeutics from a “buy” rating to a “hold” rating in a research note on Saturday, October 18th. Finally, HC Wainwright reiterated a “buy” rating and set a $145.00 price target on shares of Corcept Therapeutics in a report on Tuesday, November 25th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Corcept Therapeutics has a consensus rating of “Hold” and a consensus price target of $96.83.

Insider Transactions at Corcept Therapeutics

In related news, insider Sean Maduck sold 20,000 shares of Corcept Therapeutics stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $73.99, for a total value of $1,479,800.00. Following the completion of the transaction, the insider owned 7,904 shares in the company, valued at approximately $584,816.96. This trade represents a 71.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Joseph Douglas Lyon sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $79.53, for a total value of $397,650.00. Following the sale, the insider directly owned 10,277 shares in the company, valued at $817,329.81. The trade was a 32.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 196,700 shares of company stock worth $15,474,198. 20.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Corcept Therapeutics

A number of hedge funds and other institutional investors have recently made changes to their positions in CORT. AQR Capital Management LLC increased its stake in shares of Corcept Therapeutics by 546.9% during the third quarter. AQR Capital Management LLC now owns 1,507,209 shares of the biotechnology company’s stock valued at $125,264,000 after buying an additional 1,274,215 shares during the period. Norges Bank purchased a new position in Corcept Therapeutics during the 2nd quarter valued at about $72,048,000. TD Asset Management Inc raised its holdings in shares of Corcept Therapeutics by 16.6% in the 3rd quarter. TD Asset Management Inc now owns 956,136 shares of the biotechnology company’s stock valued at $79,464,000 after purchasing an additional 136,254 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Corcept Therapeutics by 223.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 849,864 shares of the biotechnology company’s stock valued at $70,632,000 after purchasing an additional 587,053 shares in the last quarter. Finally, Epoch Investment Partners Inc. lifted its position in shares of Corcept Therapeutics by 10.7% in the 3rd quarter. Epoch Investment Partners Inc. now owns 847,104 shares of the biotechnology company’s stock worth $70,403,000 after purchasing an additional 81,700 shares during the period. Institutional investors own 93.61% of the company’s stock.

Corcept Therapeutics Company Profile

Corcept Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing drugs that modulate the effects of cortisol, a hormone implicated in a range of severe metabolic, oncologic and psychiatric disorders. The company’s scientific platform centers on selectively targeting the glucocorticoid receptor to counteract the harmful consequences of excess cortisol, a strategy designed to address diseases with significant unmet medical needs.

The company’s flagship marketed product, Korlym (mifepristone), is approved in the United States for the treatment of hyperglycemia secondary to Cushing’s syndrome in patients who have type 2 diabetes or glucose intolerance and are not candidates for surgery.